FRC issues final UK audit standard revisions on fraud and going concern

Ellichipuram Umesh

Thu, April 30, 2026 astatine 9:16 AM CDT 2 min read

The Financial Reporting Council (FRC) has issued last changes to 2 halfway UK auditing standards that acceptable retired auditors' responsibilities erstwhile dealing with fraud and going concern.

The updated standards are ISA (UK) 240 – The Auditor’s Responsibilities Relating to Fraud successful an Audit of Financial Statements, and ISA (UK) 570 – Going Concern. Both were revised successful March 2026.

The updated ISA 240 sets retired stronger and clearer obligations for auditors connected fraud, including enhanced hazard appraisal procedures and much transparent audit reporting, particularly for engagements involving publically traded entities.

Revisions to ISA (UK) 570 code the mode auditors measure and study connected an organisation’s quality to proceed arsenic a going concern. The updated modular draws connected acquisition from caller firm failures and is intended to conscionable rising expectations from investors and different stakeholders.

The FRC stated that these revisions are the result of a nationalist consultation process and are aligned with caller amendments made by the International Audit and Assurance Standards Board (IAASB) to equivalent planetary standards.

According to the regulator, keeping UK requirements intimately successful measurement with planetary standards is viewed arsenic important for maintaining equivalence betwixt UK and planetary auditing frameworks and for supporting assurance successful the UK’s superior markets.

Both updated standards volition instrumentality effect for audits of fiscal statements for reporting periods opening connected oregon aft 15 December 2026.

The FRC besides pointed retired that UK standards had been updated up of the IAASB’s astir caller changes, meaning that galore of the strengthened provisions were already embedded successful home practice.

It truthful expects that the last revisions volition pb to lone constricted further enactment for auditors beyond what is already required nether planetary standards.

"FRC issues last UK audit modular revisions connected fraud and going concern" was primitively created and published by The Accountant, a GlobalData owned brand.